A 40-basis-point drop in 30-year mortgage rates and higher incomes boosted the April 2026 index to its highest level in a year.
The Housing Affordability Index climbed to 110.6 in April 2026, up from 101.4 a year earlier, as 30-year mortgage rates fell 40 basis points to 6.33%. Per capita disposable income rose to $68,617 from $66,095, while average hourly earnings increased to $37.41 from $36.12.
The index, which measures whether median-income households can qualify for a mortgage on a median-priced home, exceeds 100 for the first time in 12 months. The improvement reflects compressed mortgage spreads and steady Treasury yields, though inflation and weak consumer sentiment pose risks.
Despite the gains, headline PCE inflation reached 3.5% year-over-year, and the personal savings rate dropped to 4.0%, signaling potential volatility if income growth or rate relief stalls.